Manage Cost Savings Initiative
Deliver Sustainable and Consistent Cost Savings
Organizations are under ever increasing pressure to deliver cost savings.
Cost optimization was not designed to be a short-term initiative.
There should be no harm to the operations of a business when it is optimizing costs sustainably
Cost Savings can be the bridge to growth investment initiatives.
Scenario: Your CFO has said you need to save $2MM this year. How do you make it happen?
If you have a large organization with many department contributors and have tried doing this with excel spreadsheets, shared drives, and emails you know that this is a frustrating experience. It can be difficult to make sure you have the current version of the file, and that everyone isn’t making their own formats for providing the information. 100s of hours can be spent compiling the data, organizing the formatting and preparing it for business reviews.
1. Set a Cost Savings Goal Target: (ie: $25M in 2023)
2. Break it Down
Take your BIG goal and break it down into manageable chunks, and assign ownership responsibility. Allocate the overall cost savings targets to specific departments.
3. Solicit Cost Savings Project Ideas from Department/Function teams & leaders
Prioritize ideas with Effort vs Impact analysis. Schedule a regular meeting with your team to review and prioritize ideas. Fore each idea give it a rating for effort vs impact and your prioritization exercise will be much easier.
KPI Fire’s Idea Funnel helps you organize and select the best ideas to turn into projects. KPI Fire also keeps team members in the loop with an alert or email if they miss the meeting.
4. Quantify the potential savings from each project
5. Record Actual savings in Monthly Reviews of Projects
A good Visual Management system is simple to understand. Quickly identify which projects are in need of extra help.
KPI Fire is the most effective and intuitive Lean Six Sigma program management software on the market. We are trusted by many great companies with world class Lean/Six Sigma programs.
“KPI Fire saves us over 50 hours per month in time spent building reports and gathering data”
Lean Six Sigma Software
KPI Fire is lean program management software that can help your organization better execute strategic plans and priorities.